U.K. to Draft Renewable Strike Prices Tomorrow, Liberum SaysSally Bakewell and Alex Morales
The U.K. government will publish draft strike prices tomorrow outlining how much renewable project developers will earn for each megawatt-hour of power they produce, a Liberum Capital Ltd. analyst said.
The draft prices will not include nuclear power plants or carbon capture and storage projects, Peter Atherton, an analyst for the London-based investment bank, said in an e-mailed note.
The prices will be paid under so-called contracts for difference that Britain is introducing to guarantee payments for power from low-carbon sources. The government aims to get 30 percent of its electricity from clean sources by 2020, up from about 12 percent now. It has a target of deriving 15 percent of all energy from renewables by the end of the decade.
The Department of Energy and Climate Change will also publish details on the design and timetable for a capacity market, which will pay generators for providing reliable capacity at times of peak demand, Atherton said.
The British Geological Survey is due to release a report on the potential value of shale gas deposits in the nation.
A spokesman at DECC said in an e-mail that Energy and Climate Change Secretary Edward Davey and Business and Energy Minister Michael Fallon will hold a press conference tomorrow morning to outline a package of announcements aimed at stimulating growth in the energy sector.